A labyrinth seal assembly for a gas turbine engine having a rotatable shaft. The labyrinth seal assembly has: a housing defining a cavity for receiving a lubricant; a labyrinth seal between the housing and the rotatable shaft of the gas turbine engine, the labyrinth seal having a seal rotor securable to the rotatable shaft and a seal stator secured to the housing; and an insulation layer between the seal stator and the housing, the insulation layer composed of a material different than those used for the seal stator and the housing.